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Money and Banking (part – II)

📆 September 24, 2024

Total Questions: 268

181. The first Land Development Bank was established in 1920 It was located in : [U.P.P.C.S. (Mains) 2016]

Correct Answer: (b) Jhang
Solution:The first Land Development Bank (LDB) was set up at Jhang in Punjab in 1920. The main objective of the LDB is to promote the development of land, agriculture and increase the agriculture production. The LDB provides long-term finances to members directly through its branches.

182. Land Development Bank provides loan to farmers for : [R.A.S./R.T.S (Pre) 1999]

Correct Answer: (c) Long term
Solution:The Land Development Bank provides long-term loans for the development of land and increasing the agricultural production.

183. Which of the functions of Land Development Bank is correct ? [U.P.P.C.S. (Pre) 1992]

Correct Answer: (a) Providing long term loan to farmers
Solution:The Land Development Bank provides long-term loans for the development of land and increasing the agricultural production.

184. Which one of the following banks gives Long term loans to Agriculture ? [U.P.P.C.S. (Mains) 2008]

Correct Answer: (d) Land Development Bank
Solution:The Land Development Bank provides long-term loans for the development of land and increasing the agricultural production.

185. Land Development Banks is a part of : [U.P.P.C.S. (Mains) 2008]

Correct Answer: (d) Cooperative Credit Structure
Solution:Land Development Bank is a part of cooperative credit structure. It is of quasi-commercial type. The State Cooperative Banks, Cooperative Land Development Banks and Primary Agricultural Credit Societies come under the cooperative credit structure.

186. Central Cooperative Banks work at : [U.P.P.C.S. (Mains) 2004]

Correct Answer: (a) District level
Solution:In India, Cooperative Banks operate with a three tier system: Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (ST.CBs) at the state level.

187. Structure of Cooperative credit societies is : [R.A.S./R.T.S. (Pre) 1994]

Correct Answer: (c) Three tiered
Solution:In India, Cooperative Banks operate with a three tier system: Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (ST.CBs) at the state level.

188. Which of the following operates at the district level ? [U.P.P.C.S. (Spl.) (Mains) 2008]

Correct Answer: (b) Central Cooperative Bank
Solution:In India, Cooperative Banks operate with a three tier system: Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (ST.CBs) at the state level.

189. With reference to 'Urban Cooperative Banks' in India, consider the following statements : [U.P.S.C (Pre) 2021]

1. They are supervised and regulated by local boards set up by the State Governments.

2. They can issue equity shares and preferences shares.

3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct ?

Correct Answer: (b) 2 and 3 only
Solution:Urban Cooperative Banks (UCBs) refer to primary cooperative banks located in Urban and semi-urban areas. UCBs are regulated and supervised by State Registrars of Cooperative Societies (RCS) in case of single-state cooperative banks and Central Registrar of Cooperative Societies (CRCS) in case of multi-state cooperative banks and by the RBI.

Large cooperative banks with paid-up share capital and re- serves of Rs. 1 lakh were brought under the purview of the Banking Regulation Act, 1949 with effect from 1st March 1966, (through an amendment in the Act), and within the ambit of the Reserve Bank's supervision. This marked the beginning of an era of duality of control over these banks. Banking related functions (viz. licensing, area of operations, interest rates, etc.) were to be governed by RBI while registration, management, audit and liquidation, etc. were governed by State Governments through Registrars of Cooperative Societies as per the provisions of respective State Acts. Recently, the Banking Regulation (Amendment) Act, 2020, came into force with effect from June 29, 2020 for Primary (Urban) Co- operative Banks. The BR (Amendment) Act expanded the RBI's regulatory control over cooperative banks in terms of management, capital, audit and liquidation, etc.

Hence, statement 1 is incorrect while statement 3 is correct. As per BR (Amendment) Act, 2020, a cooperative bank may issue equity shares, preference shares or special shares on face value or at a premium to its members or to any other person residing within its area of operation. However, such issuance will be subject to the prior approval of the RBI, and any other conditions as may be specified by the RBI. Hence, statement 2 is correct.

190. As on March 2012, the number of Urban Cooperative Banks in India was : [U.P.P.C.S. (Mains) 2012]

Correct Answer: (c) 1618
Solution:At end-March 2012, the number of Urban Cooperative Banks (UCBs) in India was 1618, while at end-March 2011, the number of UCBs in India was 1645. At end-March, 2023 the total number of UCBs in India was 1502. As per the data of December, 2023, the total number of UCBs is reduced to 1483 (49 scheduled + 1434 non-scheduled).
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